Ten metal shares fell by 0.32% to 4.19% at 12:24 IST on BSE after latest data showed China's exports slumped in February 2014.
Tata Steel (down 4.19%), Hindalco Industries (down 4.18%), Sail (down 3.35%), Sesa Sterlite (down 2.85%), Jindal Steel & Power (down 2.66%), Hindustan Zinc (down 2.4%), NMDC (down 2.37%), JSW Steel (down 2.08%), National Aluminium Company (down 1%) and Hindustan Copper (down 0.32%) edged lower.
The S&P BSE Metal index was down 2.72% at 9,000.21 and was the top loser among the sectoral indices on BSE. It underperformed the S&P BSE Sensex, which was down 0.33% at 21,862.75.
The S&P BSE Metal index had underperformed the market over the past one month till 10 March 2013, rising 0.06% compared with the Sensex's 7.87% rise. The index had also underperformed the market in past one quarter, sliding 6.35% as against Sensex's 3.2% rise.
China's exports unexpectedly tumbled in February, swinging the trade balance into deficit and adding to fears of a slowdown in the world's second-largest economy despite the Lunar New Year holidays being blamed for the slide. The sharp drop in exports follows a series of factory surveys since the start of 2014 that point to weakness in economic activity as demand falters at home and abroad.
Exports in February fell 18.1% from a year earlier, following a 10.6% jump in January, the General Administration of Customs said on Saturday, 8 March 2011. Imports rose 10.1%, yielding a trade deficit of $23 billion ($25.4 billion) for the month versus a surplus of $32 billion in January. China is the world's largest consumer of copper and aluminum.
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Tata Steel dropped, with the stock extending Monday's losses. The company said after market hours on Monday, 10 March 2014, that since the announcement dated 10 April 2013 regarding amalgamation of Kalimati with the company under the Scheme of Amalgamation, the company has taken various steps to complete the amalgamation of Kalimati with the company. Currently, the Scheme of Amalgamation is pending for final hearing before the Bombay High Court.
Clause 15.C of the Scheme of Amalgamation reads that "In the event of this Scheme failing to take effect by 31 March 2014 or such later date as may be agreed by the respective boards of directors of the Transferor company and the Transferee company, this Scheme shall stand revoked, cancelled and be of no effect and become null and void, and in that event, no rights and liabilities shall accrue to or be incurred inter se between the parties or their shareholders or creditors or employees or any other person. In such case, each of the Transferor Company and the Transferee Company shall bear its own costs and expenses or as may be otherwise mutually agreed."
Pursuant to the aforesaid clause, the board of directors of the company and Kalimati have at their respective board meetings held on 10 March 2014, passed the resolutions extending the long-stop date of the Scheme by one year, i.e. from 31 March 2014 to 31 March 2015.
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